0

Estate Planning Mistakes Hurt Your Family After You’re Gone

Uncategorized , , , , , , , , , ,

People often think they’re simple folks with simple lives.

They try to do things on their own. It’s only later—after they’ve passed away— that a mistake is discovered, and there are unintended results.

Remember, you can’t come back to sign a new will.

The South Bend (IN) Tribune explains in its recent article, “You can do your own estate plan, but should you?” how one attorney was sorting out the $12 million estate of a man who thought his situation was straightforward enough to use do-it-yourself software.  However, his errors resulted in a situation where his executors didn’t have sufficient money to pay the estate’s taxes. That’s led to conflicts among the heirs, delays and legal fees.

A 2016 Gallup Poll survey found that only 44% of Americans have a will. That means most people don’t have a plan to guide their families or instruct who will take care of their minor children.

You should ask an estate planning attorney for a basic will, powers of attorney for financial decisions and other matters, a living will and a healthcare directive.

You might also need a living trust, which is an alternative to wills designed to avoid probate.

One of the most valuable services an estate planning attorney can provide, is the time to discuss your situation with a legal expert who has worked on many estate plans—and who knows all of the pitfalls.

If you use an online form, you don’t get this personalized consultation and the ability to ask your attorney to walk you through the steps so you understand the process. That conversation provides a level of comfort regarding how this would play out for you and for your family.

Even those advocating self-help options admit that some situations aren’t appropriate for DIY.

This includes those with multimillion-dollar estates, disabled children who require special needs trusts, blended families (especially where there may be conflict between the children and the new spouse), property in foreign countries and complex family businesses.

The best things you can do is not make people guess what you intended.

Reference: South Bend (IN) Tribune (February 6, 2018) “You can do your own estate plan, but should you?”

If you need help with your Estate Plan, give our office a call for a FREE consultation 801.438.7120!

0

Who Gets Your Bitcoin When You Pass Away?

Uncategorized , , , ,

The Financial Post’s recent article, “What happens to your Bitcoin when you die? Digital assets complicating estate planning process,” explains that because the idea of digital property is so new, it’s often not discussed in wills. That can mean that trustees or family members have to try to navigate a web of online accounts and assets.

In addition to cryptocurrencies, digital assets can include social media accounts, rewards programs, travel miles, and even gaming profiles. Email accounts can also have massive amounts of information, sentimental history and value. This information and content is worth safeguarding. Making conscious decisions in advance is the best way to ensure that these assets and accounts are passed along in the manner intended.

One potential solution is appointing an “electronic” estate trustee within a will. This person would have the same general duty as the executor or “traditional” estate trustee: executing the wishes of the deceased.  However, the role would be much narrower. He or she would be tasked with managing and administering digital assets and accounts. They could be selected based on their trustworthiness and technological savvy.

Just knowing what exists may not be enough. This is because cryptocurrencies, like Bitcoin, are tracked on a public ledger, and they can only be accessed by a person who has the private password. Individuals need to be sure that the electronic estate trustee gets this. Bitcoin has no central registry, so a forgotten password and backup means a huge loss.

A big part of the electronic estate trustee’s roles would be to navigate the specific rules and regulations of each digital account provider, and each provider’s terms and conditions can seemingly change at will.

For example, Facebook has stated that the handling of pages of people who have died is a growing concern. They now let users appoint a legacy contact who’s provided with limited access to a user’s page after the original user dies. While a legacy contact can write pinned posts and update a user’s profile, that person can’t technically log in to the account, or remove or change past posts.

If a legacy contact hasn’t been appointed, Facebook requires confirmation from an immediate family member or executor. This is where the electronic estate trustee can help, after he or she provides the correct confirmation. The electronic estate trustee could request removal of the Facebook account.

Reference: Financial Post (January 29, 2018) “What happens to your Bitcoin when you die? Digital assets complicating estate planning process”

If you would like more information, please give our office a call for a FREE consultation 801.438.7120